Sensex stages modest recovery after losing 200 pts

With just a few more minutes to go for the bell and the bears still dominating the proceedings on the bourses, the benchmark indices Sensex and Nifty look all set to end the session on a highly negative note today.

Weakness in Asian and European markets amid a slew of weak earnings reports, and concerns about the near term outlook for the economy appear to be prompting investors to indulge in some heavy selling this afternoon.

The Sensex, which declined to 18,558.05, losing around 200 points a little while ago, is currently down 135.23 points or 0.72% at 18,623.40. The Nifty is down 40 points or 0.7% at 5665.30, nearly 25 points off the day's low of 5641.75.

FMCG, consumer durables and healthcare stocks are among the most prominent losers. PSU, oil, power and bank stocks are struggling as well. Realty and information technology stocks, which found some support early on, have drifted lower now. Metal and capital goods stocks are trading mixed. Automobile stocks are outperforming the market.

Cipla is down 1.8% at Rs 356. Dr Reddy's Laboratories and Sun Pharmaceutical Industries, the other pharma stocks in the Sensex, are down 1.6% and 1.4% at Rs 1668 and Rs 684, respectively. Cipla and Ranbaxy Laboratories are also trading in negative territory with notable losses.

Dabur India reported a 16.4% rise in net profit for the July-September quarter at Rs 202.37 crore compared with Rs 173.86 crore reported in the corresponding quarter last fiscal year. Consolidated net sales increased 20.6% to Rs 1,522.60 crore in the second quarter of the current fiscal year, as against Rs 1,262.33 crore reported in the same quarter last fiscal year. The stock, however, is down in negative territory at Rs 129.80, losing nd 2.2%.

Indian Overseas Bank has tumbled by over 8% following the bank reporting a lower than expected 24% year-on-year profit at Rs 158 crore for the second quarter ended September 2012 due to lower interest and other income.

Net interest income has declined by 2% at Rs 1,246 crore on y-o-y basis, while other income down to Rs 411 crore from Rs 427 crore during the recently concluded quarter. The bank’s gross non performing assets have increased to 3.87% from 3.07%, while Net NPA almost doubled at 2.25% from 1.21% on y-o-y basis.